Frequently Asked Questions
Am I ready to be a homeowner?
Home ownership is a big commitment. Buying your first home does not have to be a financial burden. There are plenty of opportunities to get in to an affordable home now and work your way up to something more lavish in the future. Starting to invest young is key!
Is renting or buying better?
Depends! Renting is more stress-free and requires a smaller initial investment. Roughly 2/3 of residential properties are owned, the rest are rented! Renting can favour those in need of flexibility who want to shift maintenance, security, and management responsibilities to others. Doing so you can avoid volatility in housing prices, but you also miss out on the appreciation of property value as you do not own the real property.
What is a Cap rate?
The capitalization rate is a valuation technique that uses income and expense data from current sales as a benchmark. Cap rate uses the net operating income of subject property in one year and compares it to it’s market value. Investors look for a cap rate of 4-10% when investing.
What do I look for in homes?
With so much variability of homes on the market, things such as design, location, and price are up to you. There are plenty of opportunities for you to make your way into that dream home you have been looking for. The best way to figure out what you want in a home and how to approach it is to sit down with a real estate agent and have a conversation!
Do I need a home warranty?
First, let me clarify. A home warranty and home insurance are two different policies. A home warranty helps protect your homes major appliances and systems as they age. This is there to protect you when your appliance breaks down unexpectedly and you won’t be left scrambling to find money to replace it. You do not need a home warranty, and it can be a costly expense if the appliances that are covered continue to work fine for years but it can be a saving grace if you have a large unexpected breakdown! Do your research and we can discuss if a home warranty plan is right for you!
What should I expect at closing?
Do not under estimate closing expenses. Buyers should estimate closing costs around 2-5% of the purchase price, and sellers around 1-3%. Costs such as lawyer fees, land transfer tax, application fees and adjustments at closing can really add up. Be sure to account for these in your budget and don’t be caught off guard.
Click here for a full breakdown of costs to expect!
What is pre-approval?
A pre-approval is guarantee from a lender regarding the amount you will be able to spend on a home. The amount you can borrow is based on how much you earn per month and how much debt you have. This will help you figure out the price range of homes to shop for. Typically this rate is guaranteed for 130 days.
Am I ready to rent?
Before beginning the rental process it would be wise to compile a few things. Most landlords will require proof of employment, rental history, credit check, and a copy of your identification. Having all these ready will help speed up the process when you find a place you want to rent!
What should I offer?
Depends! As a real estate agent I am aware and up to date on everything going on in the housing market. A thorough knowledge of this, as well as your desires as a client will allow me to determine the best price possible. After all, this is a business and everything is negotiable so I will work to get you the price you desire!
Can I ask you for advice?
Absolutely! Any questions you have I would be happy to advise you. Team Mancini, along with the help of all our associates at the Re/Max Escarpment offices here in Ancaster can provide answers to any questions you may have. Remember, we are paid based off how productive we work and ONLY when your house sells so we will work hard to assist you every step of the way.